Road Show presentation September 2019 \ This presentation does not - - PowerPoint PPT Presentation

FY 2009 RESULTS Bologna

November 11, 2011

Road Show presentation

September 2019

\

DISCLAIMER

This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. The securities referred to herein have not been registered and will not be registered in the United States under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would require the approval of local authorities or otherwise be unlawful. The securities may not be offered or sold in the United States or to U.S. persons unless such securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. Copies of this presentation are not being made and may not be distributed or sent into the United States, Canada, Australia or Japan. This presentation contains forwards-looking information and statements about IGD SIIQ SPA and its Group. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding plans, performance. Although the management of IGD SIIQ SPA believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of IGD SIIQ are cautioned that forward-looking information and statements are subject to various risk and uncertainties, many of which are difficult to predict and generally beyond the control of IGD SIIQ; that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements. These risks and uncertainties include, but are not limited to, those contained in this presentation. Except as required by applicable law, IGD SIIQ does not undertake any obligation to update any forward-looking information or statements

3

Index

4

• 1. INTRODUCTION TO IGD

13

• 2. OPERATING DATA

39

• 5. STRATEGIC PLAN 2019-2021

66

• 6. APPENDIX

31

• 4. FY2018 + 1H2019 FINANCIAL RESULTS

26

• 3. SUSTAINABILITY

Conè - Conegliano

Introduction to IGD

5

IGD at a glance

Data as at 30/06/2019 unless differently indicated (1) 27 including 50% owned Darsena City shopping centre (2) Includes mainly the Porta a Mare project in Livorno (3) Margin from freehold properties

IGD is one of the main players in the Italian retail real estate sector: we develop and manage shopping centres across the country. We are also present in the retail sector in Romania

#1 Italian Retail SIIQ (REIT)

• c. €2.4bn portfolio value

5.4% EPRA NIY

5.4% net initial yield topped-up

80.0% EBITDA margin (3)

+260 bps since 2014 (77.4%)

FFO/share: €0.72/share (FY2018)

23% CAGR over 2014-2018

48.2 % LTV

(excl.IFRS16 c. 47%)

Target 2021 < 45%

%

EPRA NNNAV: €1,190M

€10.78/share

26 shopping malls in Italy (1) 65% of value 25 hyper / supermarkets in Italy 24% of value 14 shopping malls in Romania 6% of value Development & others (2) 4.% of value

96.6% financial occupancy

Constantly > 96% since IPO (2005)

%

Of which full ownership of 16 shopping centres (mall + hypermarket)

Dividend 2018 € 0.50

(p.s. paid in 2019)

6

An intense growth journey to reach a suitable size...

Interesting growth

• pportunities seized
• n the market

Extraordinary investments for the acquisition of 10 assets Average yield > 6.5% Completed an important pipeline Openings: 9 shopping malls 5 hypermarkets Disposals (at book value or higher values) and change in fair value

(1)

A decade of intense growth to reach an ideal size and leadership in Italy

Real estate portfolio market value

€mn

7

Our business model

Large portfolio of retail property assets with a strong customer base generating sound and visible revenues and growing cash flows

1

Presence throughout Italy but mainly focused on strategic areas in North and Central Italy, featuring average GDP per capita above EU average

3

Medium sized and easily accessible shopping centres: in line with Italy’s geographical structure which is characterized by medium sized cities and provinces

4

Presence of a strong food anchor (COOP), intimately integrated in the Italian territory, contributes to keep a high and steady level of footfalls

5

Strong track-record of direct management: proactive approach, carefully selected merchandising mix, marketing activity adapted to each context and wide offer of customer related services

6

Low exposure to commercialization risks related to development activities

7

A distinctive competitive positioning in the fragmented Italian retail property market

A unique control on 16 Shopping centres (mall + hypermarket) for a more simple and swifter day-to-day management

2

8

Coop Alleanza 3.0 40.92% Unicoop Tirreno 12.03% Free float 47.05%

Listed on the Italian Stock Exchange in the STAR segment (“high

requirements”)

• Number of shares: 110,341,903
• Share Capital: about € 750 mn
• Net Equity: about 1.2 bn € (30/06/2019)
• Market Capitalization: about €700 mn

(average market price 01/07/2018-30/06/19)

• Average daily trading: about 147,572 shares (01/07/2018-30/06/19)

27% US & Canada Black Rock Vanguard ….. 27% UK & Ireland GWM Baillie Gifford ….. 14% Italy Mediolanum Coop Lombardia Eurizon ….. 6% France Lyxor a.m. Aviva ….. 7% Luxembourg Netherlands Belgium Lupus Alpha Stichting pension fund.. 19% Rest of the World UBS Codan Forsikring Bayern Invest …..

Our shareholding structure

Freefloat equal to 47.05%, majority of institutional investors, of which(1)

1. Internal processing on Bloomberg data as at July 26th 2019

9

>22,000 ~421 ~ 2.3 million ~ 4,5 bn €

Key data of the entire Coop world and of our two main Shareholders

~ 3.9 bn €

UNIPOL GRUPPO FINANZIARIO

(Insurance and banking)

IGD SIIQ SPA strategic investments in listed companies:

* data as at 31/12/2018

• Sources: Coop Alleanza 3.0 and Unicoop Tirreno financial reports, www.e-coop.it and Rapporto COOP 2018
• Coop Alleanza is the merger of Coop Adriatica; Coop Estense; Coop Consumatori Nordest

Employees N° of stores Members Revenues Deposits from members

3,855 ~100 ~ 674,000 ~ 1 bn € ~ 700 mn €

7 LEGAL ENTITIES THROUGHOUT ITALY 17 Regions covered by Coop Coop world key data*: Turnover ~ 14.7 bn € (13.6% of italian large scale retail)

• No. of stores: ~ 1,200

Employees ~ 52,000 Members ~ 6.7 million people

>22,000 ~421 ~ 2.2 million ~ 4,1 bn € ~ 3.6 bn €

Employees N° of stores Members Revenues Deposits from members

3,650 ~100 ~ 647,000 ~ 960mn € ~ 633 mn €

* *

10

Governance - the Board of Directors

On 1 June 2018 the Sharheolders’ Meeting appointed the new Board of Directors (in office until the approval of the 2020 full year results)

• Chairman - CONFIRMED
• Chief Executive Officer CONFIRMED FOURTH MANDATE
• Number of directors further reduced (from 13 to 11)
• Independence - professional competence - international profile as main characteristics
• Specific expertise in the real estate, retail, legal and financial fields

63.6% Independent (7) 36.4% Non Independent (4) 63.6% Male (7) 36.4% Female (4)

11

Governance - Directors and Committees

IGD’s governance has been in line with the criteria of the Self Regulatory Code of Italian Stock Exchange since it was listed. An internal Corporate Governance Code has been in use since 2008.

COMMITTEES: Nominations and compensation Committee Control and Risks Committee Committee for Related Parties Transactions INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM

Held by the Chairman, including the Internal Audit and Risk Management

CHAIRMAN

Elio Gasperoni

CEO

Claudio Albertini

VICE CHAIRMAN

Rossella Saoncella

Granarolo Former General Manager

Gian Maria Menabò

Coop Alleanza Head of Asset Management and Development

Timothy Santini

Former Eurocommercial Head of Italian activities

Eric Jean Veron

Vailog - General Manager

Elisabetta Gualandri

Università di Modena - Professor

Alessia Savino

Unicoop Tirreno Head of Finance and Asset Management

Livia Salvini

Lawyer Università LUISS di Roma - Professor

Luca Dondi Dall’Orologio

Nomisma - CEO

Sergio Lugaresi

Consultant - ABI, EBA, IMF

INDEPENDENT EXECUTIVE NON EXECUTIVE NON INDEPENDENT

12

Our Top management

CLAUDIO ALBERTINI (1958) Chief Executive Officer

Appointed in May 2009 Board member at IGD since 2006 More than 20 years of experience with Unipol Group, where he ultimately acts as General Manager of Unipol Merchant Certified financial auditor registered in Bologna

ANDREA BONVICINI (1963)

Director of Finance Division

Head of the IGD Group’s Finance Division since September 2009 In July 2012 he was appointed Director of Finance and Treasury Department More than 20 years of professional experience in the world of credit, first in Cooperbanca and, subsequent to 1997, in the Bank of Bologna

RAFFAELE NARDI (1976)

Director of Planning, Control and Investor Relations

Head of the division to which 3 different departments report: planning, control and investor relations. Joined IGD in October 2010 Formerly head of the Advisory Service of UGF Merchant, bank of the Unipol Financial Group, where he matured more than ten years of professional experience Graduated in Business Economics

DANIELE CABULI (1958)

Chief Operating Officer

More than 20 years of experience in retail distribution Joined IGD in 2008 as Network Management Director and COO since 2009 Worked for Coop Adriatica since 1986 with several roles: Head of Projects in the Marketing Division (1989), Head of different geographical areas and Hypermarket Manager (until 2003), Director of Marketing and Commercial Development (from 2003)

ROBERTO ZOIA (1961)

Director of Asset Management and Development

Director of Asset Management and Development since 2006 Joined GS Carrefour Italia Group in 1999 as Head of Hypermarket and Shopping centre Development In 2005 became Head of Asset Management and Development for Carrefour Italia Previously, Business Manager at Coopsette with responsibility in projects involving mainly shopping centres (since 1986)

CARLO BARBAN (1978)

Director of Administration, Legal & Corporate Affairs

Director of Administration, Legal & Corporate Affairs since Jan 2019 CEO of Winmarkt group in the period Apr 2014 – Dec 2018. Worked in Winmarkt as Operating & Reporting Manager since January 2009 with responsibilities also for administration, planning and control and finance Previously working as a qualified accountant and for international consultancy companies Graduated in Economics and Commerce

ELIO GASPERONI (1953)

Chairman

Chairman of IGD's Board since April 2017 Vice Chairman of Coop Alleanza Board member of IGD since 2015 He has held numerous roles in Public Administrations and Local institutions

13

Operating data

14

IGD: a portfolio of high quality assets, dominant in their catchment area…

CONÈ CONEGLIANO (TV) LA FAVORITA MANTOVA CENTRO NOVA VILLANOVA DI CASTENASO (BO) MONDOVICINO SC & RP MONDOVÌ (CN) MILLENNIUM GALLERY ROVERETO (TN) GRAN RONDÒ CREMA (CR) CENTRO PIAVE SAN DONA’ DI PIAVE (VE) CLODÌ CHIOGGIA (VE) LUNGO SAVIO CESENA

IGD – Main Italian Asset

CENTRO SARCA SESTO S. GIOVANNI (MI) ESP RAVENNA LE MAIOLICHE FAENZA (RA) CENTRO BORGO BOLOGNA PUNTADIFERRO FORLI’

NORTH

CENTRO LAME BOLOGNA CENTRO LEONARDO Imola (BO) FONTI DEL CORALLO LIVORNO CENTRO LUNA LA SPEZIA I BRICCHI ISOLA D'ASTI (AT) TIBURTINO GUIDONIA (RM) MAREMA’ GROSSETO CENTRO PORTO GRANDE PORTO D'ASCOLI CITTÀ DELLE STELLE ASCOLI PICENO PIAZZA MAZZINI LIVORNO

CENTER

CASILINO ROMA LE PORTE DI NAPOLI AFRAGOLA (NA) LA TORRE PALERMO KATANÉ CATANIA OFFICINE STORICHE LIVORNO CENTRO D'ABRUZZO PESCARA

FUTURE OPENINGS SOUTH

> 75% of the market value of Italian Malls and Hypermarkets dominant (1) in respective catchment areas

• 1. Dominant assets: assets that are reference points for the consumers in their catchment area in terms of attractivity and offer quality

Key assets malls with > €70mn mkt value

15

Sources: Istat, Eurostat, IMF

…located in the most attractive Italian regions

>80% of value of italian portfolio concentrate in Northern & Central Italy 1H2019 € 2,388.2

>10.0% 9.9% – 6.0% 5.9% – 0.1% 0.0%

ITALY- 61 properties in 12 regions (93.7% of total IGD market Value)

1

# of

properties 22 5 1 7 7 5 2 2 4 3 2 #

% of Portfolio Market Value ROMANIA 6.3% NE 40.3% NO 14.0% C 27.2% S+I 12.2%

Data as at 30/06/2019 Data as at 30/06/2019

GDP Per-capita

€28,500

Italian average

€29,200

EU average €34.6k – €42.6k €30.0k – €34.5k €20.6k – €29.9k €16.8k – €20.5k

38.0k 33.1k 39.2k 30.9k 30.3k 31.6k 35.3k 30.4k 26.8k 24.5k 32.7k 24.7k 19.8k 18.2k 18.4k 21.1k 17.2k 17.5k 20.6k 35.2k

Data as at 31/12/2017

16

Hyper 24.4 %

(583.4 €mn)

Malls 65.0%

(1,553,1 €mn)

Romania 6.3%

(151.2€mn)

• ther 4.3%

(100.7€mn)

KEY 53.9% MEDIUM 35.6% SMALL 10.5%

The main characteristics of our portfolio

Full ownership of 16 Shopping centres (mall+hyper) in Italy (63.2% of Italy core market value) Average figures for IGD’s Italian shopping centres:

• Catchment Area ~ 370,000 inhabitants in 20 minutes
• Easily reacheable: ca. 4 km from the city centre
• footfalls 3.5 mn per year (2018)
• GLA ~ 25,000 m2

A young portfolio: old on average 7 years (since opening or last

restyling)

Mall Tenants’ Sales (Ita) per GLA m2:2,800 (aug 2018-jul 2019) 18 of 25 Hyper/Super (Ita) are small (Sale area <6000 m2)* € 2,388.3mn Total GLA (Ita) 665,000 m2 (market share c. 4%)

Key malls: assets with mkt value > €70mn;

17

Strong repositioning of the Romanian portfolio

1 2 3 4 5 6 7 8 9 10 11 12 13

• C. €62 mn of dividends generated

since the acquisition (1)

• c. €20mn of investments (2008-

2018) for the upgrade and repositioning of the portfolio No financial leverage Self-financing of the investments carried out 1. Until June 2019

14

Romanian portfolio considerably repositioned, currently generating important free-cash flow 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Acquisition Surfaces recovery/Tenant Repositioning and complete external / internal refurbishment 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Consolidation 2019-2021 New Plan

Key Strategical points

• Further €4.5 mn capex for safety,

maintenance and commercial improvements

• Growth trend of rents
• Attention on operational costs
• Focus on sustainability

18

2,412.2 6.7

• 28,0

1.1

• 4,7

1.1 0.0 2,388.3

Asset value as at 31/12/2018 Italy project and Capex Change in market value Italy Romania project and capex Change in market value Romania Porta Medicea project and capex Change in market value Porta Medicea Asset value as at 30/06/2019

Property investments as at 30/06/2019

€mln

The Change in FV is due for about 60% to change in market rates and for about 40% to other changes in cash flow*

• Tot. Italy

96.3%

*linked specifically to a forecast reduction in variable rents

N.A.

FY 2018 1H 2019 ∆% Gross Initial Yield Net Initial Yield Net Initial Yield topped up Financial

• ccupancy

Italy Malls 1,573.79 1,553.06 (-1.32%) 6.43% 95.05% Italy Hypermarkets 585.63 583.38 (-0.38%) 6.07% 100.0% Romania 154.79 151.17 (-2.34%) 6.94% 5.80% 6.20% 96.45% Porta a Mare + development + other 97.94 100.72 Total IGD Portfolio 2,412.15 2,388.33 (-0.99%) Leasehold properties (IFRS16)

• 61.21

Total IGD Portfolio with leashold 2,412.15 2,449.54 + 1.55% 5.40% 5.40%

19 € 11.45 € -0.50 € -0.20 € 0.38 € -0.35 € 10.78

EPRA NNNAV 31 DEC 2018 Dividend Change in Debt Fair Value and other FFO Asset Fair Value EPRA NNNAV 30 JUN 2019

EPRA NNNAV per share as at 30/06/2019

Full effect of the annual dividend distributed in May

€ per share

31/12/2018 ∆ NAV 11.77

• 3.6%

NNNAV 11.45

• 5.8%

30/06/2019 11.34 10.78

20

(1) Data as at 1 August 2019 (3)Household consumption expected for 2019– Istat (2) Data as at July 2019

97.5% 97.4% 96.2% 96.9% 97.3% 96.8% 97.2% 96.6% (1.8%) 1.6% (2.9%) (3.1%) (1.6%) 3.4% 6.7% 2.6% 4.3% 2.2% 0.2% (1.1%) 1.0% (0.5%) (3.3%) (1.9%) 0.0% 1.3% 1.1% 1.1% 0.7% 0.5% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2019 IGD – Tenant sales Italy – Households consumption

(2)

0.7% 1.5% 3.1% 0.5% (1.2%) 0.2% 0.3% 1.7% 1.5% 1.3%

• 0.6%

(5.5%) 1.7% 0.6% (2.8%) (1.7%) 0.1% 1.0% 0.9% 1.5% 1.0% 0.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2019 IGD – LfL rental growth Italy – GDP Growth IGD – Financial Occupancy

IGD performances better and more resilient than Italian GDP and consumption trends

IGD – LfL Rental Growth vs. Italy – GDP Growth

%

IGD – Tenant sales vs. Italy – Households consumption

%

Always high, stable and resilient occupancy over time

Sources: I-STAT, EU Com IMF, Eurostat

(3) (1)

21

Focus on trends Italy as at 30/06/2019

A difficult first quarter with calendar effect (Easter) plus adverse weather conditions in February and May

• 2Q 2019 good signs of recovery of footfalls and sales
• July 2019 good perspectives with an increase in footfalls and asales back to positive trend

Tenant sales and footfall progressive trends 2019 vs 2018

• 0.4%
• 6.2%

1Q

+0.2% +0.6%

2Q

1.4% 0.6%

• 0.4%
• 0.2%
• 1.2%
• 0.1%

0.2%

• 1.1%
• 3.8%
• 6.2%
• 3.9%
• 3.2%
• 2.9%
• 2.3%
• 7.0%
• 6.0%
• 5.0%
• 4.0%
• 3.0%
• 2.0%
• 1.0%

0.0% 1.0% 2.0% Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Tenant sales Footfalls

22

Contracts in Italy and Romania as at 30/06/2019

MALLS ITALY

Average residual maturity: 4.6yrs Total contracts: 1,467 of which during 1H2019 98 renewed with the same tenant and 64 signed with a new tenant Upside 1H2019: +1.1% (1) Rotation Rate 4.4% (% new contract on tot contr) Average residual maturity: 14.2yrs Total number of contracts: 25

HYPER ITALY MALLS ROMANIA

1. Excluding one renewal in Centro Sarca (multiplex)

Average residual maturity: 4.7yrs Total contracts: 585 of which during 1H2019 103 renewed with the same tenant and 93 signed with a new tenant Upside 1H2019: +8.1% (on renewals)

13% 23% 20% 44% 2H2019 2020 2021 >2021

N 143 N 206 N115 N 121

7.4% 10.2% 14.0% 68.5% 2H2019 2020 2021 >2021

N 122 N 187 N 235 N 923

6.2% 93.8% 2H2019 2020 2021 >2021

N 1 N 24

23

On-going projects in Italy: our idea of shopping

We believe in the social role of the Shopping Center

«SOCIAL BORGO Project »

c/o Centro Borgo Bologna

Shopping Center as a space at the service of the local community that actively involves those who live near-by.

To be completed by the end of the year

A tailormade offer to satisfy our visitors New brands added: More space dedicated to services

• + 1 new dental clinic (Conè) in addition to the 20 already in
• peration
• Merchandising mix constantly evolving thanks to the addition
• f new brands and services

LLOA BE NATURAL (restaurant) in Centro Sarca DROGERIE MARKT (grocery) in Centro Piave and Gran Rondò BABY STAR (beauty salon and entertainment area for children) in Fonti del Corallo

Weight of services turnover on total IGD Malls turnover

2.2% 3.8% 5.3% 1h 2015 1h 2017 1h 2019

24

Romania - Commercial activities

New entry in Winmarkt portfolio: more and more international and attractive merchandising mix 2 new shops

(Ploiesti Grand Center & Ploiesti Big) Total network: 6 shops

German clothing brand

1 shop

(Cluj)

New

• pening in

2H 2019

Hungarian clothing brand Romanian brand Children equipment and clothing

25

TOP 10 Tenant Product category Turnover impact Contracts supermarket 10.0% 11 clothing 7.5% 6 clothing 4.1% 11 clothing 2.3% 6 drugstore 2.5% 5 jewellery 2.2% 6 pharmacy 2.1% 4 electronics 1.5% 2

• ffice

1.6% 1 electronics 1.5% 1 Total 35.3% 53 TOP 10 Tenant Product category Turnover impact Contracts clothing 3.0% 13 clothing 2.9% 12 shoes 2.2% 9 clothing 2.2% 29 clothing 2.0% 10 electronics 1.9% 8 clothing 1.7% 27 jewelley 1.3% 19 perfurmery 1.3% 12 leisure 1.3% 25 Total 19.6% 164

INTERNATIONAL BRAND 41% NATIONAL BRAND 47% LOCAL BRAND 12%

Key tenants as at 30/06/2019

MALLS TENANT MIX MALLS MERCHANDISING MIX

Top 10 Tenants Romanian Malls

MALLS TENANT MIX MALLS MERCHANDISING MIX

Top 10 Tenants Italian Malls

INTERNATIONAL BRAND 36% NATIONAL BRAND 20% LOCAL BRAND 44% SUPEMARKETS 11% ELECTRONIC 3% CLOTHING 41% LEISURE 13% OTHER 32%

RESTAURANTS 7% ELECTRONIC 11% CLOTHING 52% ENTERTAINMENT 3% SERVICES 8% PERSONAL AND HEALTHCARE 5% CULTURE, LEISURE GIFT ITEMS 6% HOUSEHOLD GOODS 8%

Sustainability

27

GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER

Our committment Area

• 95% of the portfolio ISO 14001 certified
• BREEAM IN USE (at least at level «Very Good») for 5 more shopping centers

Environmental certification

• €5 mn expected for structural intervention in order to improve the energy efficiency
• More photovoltaic systems will be installed

Measures to reduce energy consumption

• Intervention on electric mobility (agreements with ENERHUB and TESLA)
• Definition of a feasibility study to favour cycling mobility
• Evaluation on the possibility to use bike and car sharing

Sustainable mobility

• Starting of the operating phase of the Waste2Value project and evaluation of other projects on the same issue

Circular economy

Sustainability as essential driver 1/2

28

• Anti-corruption

certification project

• Maintaining highest

possible score (3 stars) of legality rating

GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER

• Continuous update of the

corporate Welfare System

• Monitoring of the work

environment and definition

• f follow-up actions
• Continuation of projects for

the safety and security of the structures (anti- seismic and anti-terrorism measures)

• Exclusive and inclusive

events

• Cooperation with the local

area

• Analysis and definition of

measures to favour wellbeing inside shopping centers

• Projects to capture insights

from millennials regarding the shopping center of the future and from tenants regarding common sustainability projects

Sustainability as essential driver 2/2

29

Sustainability: our strategy and what we are doing

1.As at 30/09/2018

GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER

7 Shopping Centres equipped with photovoltaic systems 1 Shopping Centre equipped with e-bike charging station powered by a photovoltaic system 16 Shopping Centres equipped with led lighting systems 100% electricity from renewable sources in all Shopping Centres 90% of the Company portfolio with ISO 14001 certification 5 Shopping Centres with Breeam/Breeam in Use certification 10 EV charging stations installed in 5 Shopping Centres (32 in 18 Shopping Centres by 2020 1 Circular Economy project launched A Corporate Welfare System for all employees Anti bribery management systems certification in Romania About 1,000 visits carried out yearly for the prevention of skin cancer and thyroid check-ups

30

Awards and International Benchmark

For Sustainability Report 2014-15-16-17 EPRA sBPR Gold Award Oscar di Bilancio Ferpi For 2016 and 2017. Igd was one of the 3 finalists for the prize GPR IPCM LFFS Sustainable GRES Index Financial Index. IGD was included in 2017 For restyling_Centro Sarca CommOnEnergy Award CNCC Design Award For ESP Shopping Center Premio Innovazione SMAU R2B For «Waste2Value» project Institutional Shareholder Services Carbon Disclosure Project In 2018 IGD confirmed the result obtained in

• 2016. The overall score obtained in the year

was level C (in a range from A to D) IGD obtained the risk assessment value of 5 for Governance, 2 for Enviroment and 3 for Social, on a scale of 1 (lower risk ) to 10

FY 2009 RESULTS Bologna

November 11, 2011

FY2018+1H2019 Financial Results

32

FY 2018 and 1H 2019 main results

Revenues

• Rental income
• Net Rental Income

€151.8mn EBITDA

• EBITDA (Core Business)
• EBITDA Margin (Core Business)
• EBITDA Margin from Freehold

€113.7mn 71.9% 80.3%

• Group Net Profit

€46.4mn Core Business Funds from Operation (FFO) Core Business FFO per share (1) €79.7mn €0.72

(1) Calculated on the year-end no. of share 2019 adj ex IFRS16 does not consider the application of the accounting principle IFRS16

2018

+9.2%

2017

€138.9mn €101.2mn 69.7% 79.2% €86.5mn €65.6mn €0.81

+12.4% +220pts +110pts

• 46.3%

+21.4%

€77.3mn €62.9mn 78.2% €7.1mn €41.8mn

1H2019 1H2018

€74.1mn €55.6mn 72.1% €34.8mn €38.9mn

+4.4% +4%

• 30pts

n.a. +7.6%

€77.3mn €57.9mn 71.8% €7.2mn €41.8mn

1H2019Adj

€124.0mn

+10.9%

€111.9mn €68.6mn €60.7mn

+4.6%

€63.5mn

1H19Adj/1H18

33

67.3% 25.8% 6.3% 0.7%

MALLS HYPERMARKETS ROMANIA OTHER

Rental Income (€mn)

Total Rental Income €77.3 mn

• Figures may not add up due to rounding

1H2019 FY2018

66.6% 26.5% 6.4% 0.5%

Malls Hypermkt Romania Other

Total Rental Income €151.8 mn

Growth of malls (+1.5%)  Growth of hypermarkets (+0.9%)  Indexation effect≈ +90bps Decrease in malls (-0.9%) due to an increase in temporary discounts and strategic/temporary vacancy  Hypermarkets substantially flat  Inflation impact≈ +70bps

74.1

• 0,4

3.6 0.1 77.3

Rental income 1H 2018 Change LFL italy Non LFL Italy Change in LFL Romania Rental income 1H 2019

• 0.6%

+1.8% +3.2 €mn +4.4% Total LFL

• 0.5%

138.9 1.7 10.9 0.3 151.8

Rental income FY 2017 Change in LfL Italy Non Like for like Italy Change in LfL Romania Rental income FY 2018

+1.3% +2.9% +12.9 €mn +9.2%

34

60.7 3.2

• 0,5

63.5 5.1 68.6

Net rental income 1H_CONS_2018 Change in rental income Change in rental cost Net rental income 1H_CONS_Adj_2019 IFRS16 Effect Net rental income 1H_2019

Net rental income (€mn)

+€2.8 mn +4.6% Italy +4.7% Romania +2.1%

• 2019 adj ex IFRS16 does not consider the application of the accounting principle IFRS16.

+€7.9 mn +13.0% 1H2019 FY2018 +€12.1 mn +10.9% Italy +11.8% Romania +1.6%

111.9 12.9

• 0,8

124.0

Net rental income FY_CONS_2017 Change in rental income Change in rental costs Net rental income FY_CONS_2018

35

Funds From Operations (FFO) keep growing

+€3.0mn +7.6%

• Ground rents Payable leases and adjusted cost of financial management have been considered in order to calculate the FFO
• Figures may not add up due to rounding

1H2019 FY2018

+21.4% 65.6 12.5 1.8

• 0,2

79.7

FFO FY_CONS2017 Change in core business EBITDA Change in financial management (Net liability Management) Change in taxes and other FFO FY_CONS2018 38.9 2.2 0.6 0.1 41.8

FFO_2018 Change in EBITDA adj Change in Financial Management adj Change in taxes and other FFO_2019

36

Review to the previous guidance (+6/7%) considering:

FFO FY2019 REVISED OUTLOOK

released on 2 of August

+4/5% Outlook

• Weak consumption dynamics
• Slight increase in temporary and strategic vacancy (with a consequent increase in non re-chargeable costs)
• Temporary effects due to remodeling activities of medium surfaces and hypermarkets

37

Financial structure (1/2)

S&P GLOBAL RATINGS BBB-

• utlook stable

(23 April 2019)

RATING

MOODY’S Ba1

• utlook stable

(9 April 2019)

LTV ICR AVERAGE COST OF DEBT 45.8% 3.5X 2.7% 48.2%

(excluding IFRS16 c. 47%)

3.8X

(excluding IFRS16 c. 3.7x)

2.4%

31/12/2018 30/06/2019

Debt Breakdown

Net Debt €1,184.9 mn*

* Net debt including the effect of IFRS16 (without IFRS16 approx. €1,126.7 mn)

BANK 53% MARKET 47%

S.T. 22.67 L.T. 1,164.98 CASH -2.76

38

23 46 58 25 67 53 27 52 200 300 162 100

2019 2020 2021 2022 2023 2024 2025 >2025

Bonds Bank debt unsecured Bank debt secured 2.65% 7y 2.25% 7y 2.5% 5y

Debt maturity

Financial Structure (2/2)

* Effective cost with 3 years hedging + estimates for the following 2 years

AVERAGE LENGHT OF LONG TERM DEBT HEDGING ON LONG TERM DEBT + BOND

• c. 4.3 years
• c. 92.9%

31/12/2018

• c. 3.77 years
• c. 93.3%

30/06/2019

GEARING RATIO

• c. 0.88 x
• c. 0.97 x

(excluding IFRS16 c. 0.93x)

2.1% 5y*

Secured and unsecured debt break down

SECURED 29% UNSECURED 71%

Strategic Plan 2019-2021

40

Shopping Experience and Social Centers Hypermarkets Shopping Centers Mall + Hypermarket Shopping and Services Centers

Retail: a continuously evolving world

FEATURES Increased interaction and personalisation with visitors E-commerce integration Greater and more specialised product offer From a simple place of purchase to shopping and social gathering location 1970s - 1980s 1990s 2000s FUTURE OF RETAIL Hypermarket as a center of attraction for stores

41

IGD’s current positioning and long-term commitment

IGD important efforts for repositioning and long-term commitment Shopping experience High-end services Integration with the E-Commerce

Restaurants Omnipresent Retailers

Old retail offer Focus on price

Low level fashion offer

Medium High Low

Risk of Obsolescence for Shopping Centers

Supported by strategic relationship with high quality tenants

42

IGD Mission Statement

After a decade of growth… A plan focused on strengthening the solid and sustainable leadership of our shopping centers in their respective catchment area and to be prepared for future challenges

43

Asset management Innovation and operational excellence Financial strategy

2019-2021 Strategic Plan

A consolidation and enhancement plan based on 3 pillars

Investments aimed at maintaining and increasing the quality of our portfolio favouring innovation, merchandising mix, attractiveness, the quality of materials, as well as sustainability Great focus on innovation and

• perational excellence mainly in

relation to commercial, marketing and sustainability areas Maintaining a solid financial structure in line with the investment grade profile

44

Target What we doing

Our idea of shopping centers in 6 key words 1/2

Identify solutions that make shopping more engaging and experiential in

• rder to impress visitors: experience
• riented shopping center
• «Experience to be lived» project has already been

introduced in 2 Shopping Centers (Puntadiferro and Città delle Stelle) in 2018. 3 other Shopping Centers will be involved from 2019 Entrench the Shopping Center in its local area promoting good relations and social behaviour in order to establish ties, exchange knowledge and carry out projects of common interest.

• Transfer within the shopping center of the rationale

and dynamics of a social street, phenomenon first created in Bologna in via Fondazza in 2013, now involving over 100 thousand people, not only in Italy Focus on visitors, establishing unique and special relations

• Chat bot technology: customer service by means of

24/7 real time chat

• CRM (Customer Relationship Management) Strategy
• Instagram: integrated management of the Instagram

channel in 16 Shopping Centers.

Personalisation

• f Shopping

Center / Visitor relation Experience Social Shopping Centre

+ attractiveness + brand awareness + Facebook interaction

45

Introduce and manage a set of tools which enable us to improve our customers’ journey, also by means of new technology Connect the online and offline shopping experience Offer recreational opportunities within Shopping Centers, enhancing their role as an entertainment, activity and meeting location.

• Introduce EV charging stations (in 18 Shopping

Centers) and e-bike charging points

• More Services: 21 dental clinics (turnover up +9.7%)
• Interactive digital communication by means of totem

in all the IGD centers

• Establish a channel of communication with the

Marketing office of the shopping mall tenants in order to better identify innovative and common solutions regarding the omnichannel issue

• Installation of Amazon lockers (21 on 27). 2 Poste

Italiane lockers have already been installed in Sarca and Tiburtino Shopping Centers

• Offer innovative, exclusive and inclusive events (also

through co-marketing activities) as part of the

• approx. 540 events held every year in the IGD

Shopping Centers

Our idea of shopping centers in 6 key words 2/2

Services Ominchannel Entertainment

Target What we doing

46

Services

Introduction of new services (medical and veterinary clinics, schools)

Sharing economy

Introduction of new sharing economy activities (coworking, rental retail..)

Entertainment Areas

Set-up of entertainment areas conceived as primary destination

Outlet

Creation of outlet stores in the Mall, in agreement with the tenants

Tenants with a wider and more complementary offer

Introduction of tenants with merchandise that complements the reduction of the hypermarkets

Food court

More diversified offer, in line with new trends (vegan, bio,..)

Kiosks

Creation of kiosks for the collection of

• nline purchases

Tenants present online

Search for online tenants who would like to open stores within the mall

Broaden and diversify the retail offer Online-offline interaction

Business approach to align merchandising mix with current trends

47

Asset management: 4 main operating levers

Completion of the current pipeline (Officine Storiche and ESP Entertainment)

3

Requalification of the existing portfolio (restyling/refurbishment)

1

Strategic agreement with Coop Alleanza 3.0: an opportunity

2

Ass et rotation

4

48

Shopping Center Date

• f work

Type

• f work

Increase in Shopping Center revenues(1) Centro Sarca (Milano) 2015 Complete restyling and remodeling

22.4%

Centro Borgo (Bologna) 2015 Complete restyling and remodeling

21.4%

Esp (Ravenna) 2017 Extension

61.4% (2)

Città delle Stelle (Ascoli Piceno) 2017 Remodeling

18.6% (2)

Centro d’Abruzzo (Chieti) 2014 Extension and restyling

14.4%

Tiburtino (Roma) 2014 Remodeling

17.4%

Le Porte di Napoli (Napoli) 2015 Remodeling

5.2%

La Torre (Palermo) 2015 Remodeling

5.7%

Restyling/refurbishment projects

Between 2014 and 2018 we carried out and completed various extensions, remodeling and restyling work in our shopping centers

6 5 4 3 2 1

1 2 3 4 5 6 7 8

Centro Sarca (Milano) Centro Borgo (Bologna) Esp (Ravenna) Città delle Stelle (Ascoli Piceno) Tiburtino (Roma) Centro d’Abruzzo (Chieti) Le Porte di Napoli (Napoli) La Torre (Palermo)

Important advantages for our tenants with a positive effect

• n the long-term sustainability of rental income

1 Important track record in asset management

1.In the first 2 years after the end of work

• 2. Revenue growth 2017/2016

7 8

49

Restyling/refurbishment projects

1

Description Restyling of the external facade and internal areas together with (voluntary) seismic improvement measures on the Ground Floor and First Floor Following the extension and the restyling

• f

the facade, the restyling of the mall interior will be carried out together with the remodeling of the hypermarket Proejct Type of work FONTI DEL CORALLO Restyling GRAN RONDO’ Internal Restyling End of work End of 2019  Remodeling already done Restyling end of 2019 2H 2020 Restyling

• f

the facade, the internal areas and the car park LA FAVORITA Internal and external Restyling 1H 2021 CENTRO CASILINO Hypermarket reduction (new GLA 9,300 sqm) and creation of new units in the Mall (new GLA

• approx. 5,400 sqm) in which

services will be inserted Unicoop Tirreno has signed an extenson to the lease agreement with expiry in 2037 Mall interior and exterior restyling project (jointly financed by BNP Paribas, current owner of the mall) Remodeling and Restyling

50

Restyling/refurbishment projects: other on going projects

Hypermarkets remodeling works have started in line with 2019-2021 Strategic Agreement with Coop (see following slides) Goal: reduction of the hypermarket area and creation of new retail

units in the mall

• Hypermarket: work in progress – end of work Sept 2019
• Mall: start of work Sept 2019 – end of work Feb 2020

Goal: reduction of the hypermarket area and creation

• f new retail units in the mall + center restyling (project

by Lombardini 22) and seismic improvement measures

• Hypermarket: work in progress – end of work Nov

2019

• Mall: start of work Sept 2019 - end of work Set

2020

2 1 3 1

51

FUTURE SITUATION

• Establish relations which are increasingly structured and

integrated with regard to common marketing projects

• More in-depth analysis on behaviour of consumers/visitors
• Customer relationship management (CRM)
• Organisation of contests and events
• Take advantage of the unitary ownership to make a better

use of the GLA

CURRENT SITUATION

• Continuos and effective Cooperation between the Shopping

Malls and Coop in the ordinary and extraordinary management of the centers

• Cooperation with Coop for common marketing analysis
• GLA surplus in some hypermarkets

Strategic Agreement with Coop Alleanza 3.0, partner / food anchor

For 7 out of 10 visitors (1) the hypermarket is the reason they visit our Shopping Centers The role of the food anchor (hypermarket) remains fundamental with the ability to attract visitors. Strong synergy between IGD and Coop that generates excellent operating / financial performances

2 The role of the mall and the hypermarket

1.Internal survey

52

Strategic Agreement with Coop Alleanza 3.0, partner / food anchor

A framework agreement regarding the complete review of 18 contracts (out of a total of 20) of the hypermarket portfolio rented to Coop Alleanza 3.0, has been signed: 1. Review of contractual terms and conditions: the expiry dates of all the contracts affected by the agreement will be extended and some of the rents will be revised to make them more stable and sustainable 2. Qualitative review of assets: following the successful remodeling of the hypermarkets and malls in Le Porte di Napoli and Città delle Stelle, 5 assets have been identified, where the number of stores/services in the mall needs to be increased, by means of reducing the hypermarket, in order to enhance the attractiveness of the centers.

Agreement regarding approx. €520 mn of the market value (approx. 21% of IGD total market value)

Targets

Stabilisation of lease agreements in the long-term Increase the sustainability of rents / future cash-flow Requalification and adaptation of the role of the hypermarket in shopping centers 1 2 3

2

53

The main effects expected from the agreement, together with a higher rent sustainability, will be:

2

Breakdown by rental income IGD Group Maturity of the Coop Alleanza 3.0 hypermarket contracts (% on total rents) Maturity of the Coop Alleanza 3.0 hypermarket contracts (% on total rents)

13.3% 26.5% 12.9% 7.5% 17.0% 12.2% 7.4% 2.4% 2.2% 5.3% 94.7%

Post agreement Pre agreement

Strategic Agreement with Coop Alleanza 3.0, partner / food anchor

Plan period

Hypermarket 21/22% Rest of the portfolio 78/79% Rest of the portfolio 73% Current breakdown End of plan breakdown Hypermarket 27%

Average residual maturity: 7.1 years Average residual maturity: 17.7 years Agreement effects:

• Reduced and uniform effort rate
• GLA Hypermarkets -21,400m2 GLA Malls +18,600m2
• Net rental inpact of c. € -1.9 mn
• Rents in line with ERV(1)
• 1. ERV: rental value estimated as at 30/06/2018 by the independent appraisers who evaluated the real estate portfolio

54

Pipeline Completion: Porta a Mare Project overview

PALAZZO ORLANDO Completed in 2009

Offices – Sales agreement signed on 28/06/2019

PIAZZA MAZZINI Completed

Retail: already

• perational since

2016, owned by IGD Residential: 73 units

• f which 72 sold/pre-

sold

OFFICINE STORICHE Work in progress

Retail: >15,000 sqm Residential: 43 units

MOLO MEDICEO, LIPS, ARSENALE

Hotel, residential, services for the port

Focus next slide Focus: see next slides

3

55

Pipeline Completion: Officine Storiche

Work restarted*: March 2019 End of work: 2H 2020 Total expected investment: € 53 mn (remaining ca.€ 20 mn) Total surface: 20k sqm, of which 15k sqm devoted to retail Stores: 30 + 10 restaurants + 1 fitness center The area will connect the city’s downtown with the sea and transform the old-style spaces based on a totally new concept with a unique design and a rich retail offering.

* Following the new building permits, based on the changes to the original project, which also includes 43 apartments and 500 parking places

3

56

Pipeline Completion: Other areas

Molo mediceo

LIPS: hyphotesis of a 4-star business hotel and residence with apartments designed for ship crews or student housing ARSENALE: possibility of one or more residences MOLO MEDICEO: services for the touristic port The enhancement and pre-marketing of the 3 areas are being studied for future disposals

Lips Arsenale 3

57

Asset rotation Strategy

Rationalisation of the portfolio through the disposal of some non-strategic assets for €150-200mn is under evalutation Income from disposals will be primarily allocated to reduce debt and leverage and partly re-invested 4

58

Asset rotation: what we did

Sale of Palazzo Orlando (office building) part of the Porta a Mare development project in Livorno Total GLA: 5,270 sqm Sale price: € 12.8 mn (in addition to taxes) Purchase of the 50% interest in the Darsena City Shopping Mall in Ferrara (of which IGD is currently joint-owner) Total GLA: 16,250 sqm

• N. of shops: 19

Sale price: € 13.9 mn (in addition to taxes)

* Binding Agreements with a premiere international real estate player, definitive agreements will be executed by 30 September 2019

THESE AGREEMENTS WILL ALLOW IGD TO FOCUS ON ITS CORE BUSINESS (REAL ESTATE RETAIL)

28 June 2019: sale and purchase agreements* 4

59

Maintain a rigourous financial discipline in line with the Investment Grade profile

Financial strategy

Improve and further reduce the LTV Improve the liquidity profile while maintaining a significant share of medium long-term debt (currently equal to approx. 80%(1) ) Maintain a balanced debt structure between bank debt and bond debt (maximum flexibility in the sources of financing) Broaden the investor base

Lower the exposure to financial risks (interest rate and credit) and obtain the best available capital market conditions

1.As at 30/09/2018

60

Revenues and FFO

4 years of considerable growth… Driven by new openings and acquisitions

Gross rental income

€mn

115.6 121.1 131.3 138.9 151.8 2014 2015 2016 2017 2018 35.1 45.3 53.9 65.6 +21.4% 79.7 2014 2015 2016 2017 2018

CAGR Plan period 2019-2021(1)

Consolidation plan with a sustainable growth

c.+2%

LFL c.+1.7%

c.+3%

• 1. Including the estimated effect of the asset rotation policy

FFO

€mn FFO ps c.€ 0.72

61

Investments

Capex to maintain the assets quality and safety ~ 1% of the portfolio total market value Casilino Fonti del Corallo Gran Rondò La Favorita + Other minor projects+ Investments to support marketing activities New projects such as Officine Storiche and Entertainment ESP

~35 ~ 26 ~ 90 ~ 30

Total investment plan(1)

€mn

• 1. Plus c. €10mn of further non retail investments concerning Porta a Mare project (in particular Officine Storiche residential

area which will be sold)

Restyling / refurbishment Pipeline Completion Other Capex Total investments over Plan period

~ 35 ~ 26 ~ 30 ~ 90

62

BP 2016-2018 Plan 2019-2021 (End of Plan) BP 2016-2018 Plan 2019-2021 (End of Plan)

LTV

Financial targets: a clear and defined path

ICR Average cost of debt

>45% <50% <45% <3% c.2.4%/2.7% c.3X c.4X

BP 2016

• 2018

Plan 2019

• 2021

(Plan Period)

63

35.1 45.3 53.9 65.6 79.7 28.4 32.5 36.6 55.2 55.2 0.38 0.40 0.45 0.50 0.50

• 0.10

2014 2015 2016 2017 2018

FFO €mn Div €mn Div ps €

81% 72% 68% 84% 69%

Target

Offer an attractive and sustainable dividend

• ver time

% FFO Distributed

Constant FFO and dividends growth

€ mn

Dividend Policy…bringing to growing FFO and dividends

64

• A Strategic Plan aimed at strenghtening the leadership of our shopping centers,

without further acquisitions

• IGD’s idea, to act as a platform able to aggregate new assets in order to further

increase its market share and pursue greater economies of scale, remains valid

• Always subject to adequate market conditions

Further option of growth

65

Final remarks

Built a portfolio of dominant shopping centers in their catchment area and integrated within the urban fabric Focus on new market trends, innovation and quality of the assets to enhance the leadership of shopping centers Strategic agreement with COOP Alleanza 3.0: a unique and distinctive

• pportunity

Strong commitment in reducing financial leverage (end of plan LTV <45%)

1 2 3 4

Sustainable growth of FFO and Dividends

4

Appendix

67

Consolidated Income Statement as at 30/06/2019

*2019 adj ex IFRS16 does not consider the application of the IFRS16 accounting principle. See IFRS16 effects slide 24-25. Figures may not add up due to rounding

(a) (b) (c) D D 1H_CONS_2018 1H_CONS_2019 1H_CONS_Adj_2019 (b)/(a) (c)/(a) Revenues from freehold rental activities 67.8 71.1 71.1 4.9% 4.9% Revenues from leasehold rental activities 6.3 6.3 6.3

• 0.8%
• 0.8%

Total revenues from rental activities 74.1 77.3 77.3 4.4% 4.4% Rents and payable leases

• 5.1
• 0.1
• 5.1
• 99.0%

0.4% Direct costs from rental activities

• 8.3
• 8.7
• 8.7

5.5% 5.5% Net rental income 60.7 68.6 63.5 13.0% 4.6% Revenues from services 3.1 3.2 3.2 2.2% 2.2% Direct costs from services

• 2.6
• 2.7
• 2.7

4.7% 4.7% Net services income 0.5 0.5 0.5

• 10.6%
• 10.6%

Personnel expenses

• 3.4
• 3.5
• 3.5

3.5% 3.5% G&A expenses

• 2.2
• 2.6
• 2.6

17.2% 17.2% CORE BUSINESS EBITDA (Operating income) 55.6 62.9 57.9 13.1% 4.0%

Ebitda Margin core business 72.1% 78.2% 71.8%

Revenues from trading 2.7 0.0 0.0 n.a. n.a. Cost of sale and other trading costs

• 3.2
• 0.3
• 0.3
• 91.0%
• 91.0%

Operating result from trading

• 0.5
• 0.3
• 0.3
• 40.6%
• 40.6%

EBITDA 55.2 62.7 57.6 13.6% 4.4%

Ebitda Margin 69.0% 77.8% 71.5%

Impairments and Fair Value adjustments

• 2.6
• 38.8
• 34.2

n.a. n.a. Depreciations and Provisions

• 0.5
• 0.5
• 0.7

3.3% 34.8% EBIT 52.1 23.3 22.7

• 55.2%
• 56.3%

FINANCIAL MANAGEMENT

• 16.0
• 16.4
• 15.4

2.3%

• 3.7%

EXTRAORDINARY MANAGEMENT 0.0 0.0 0.0 n.a. n.a. PRE-TAX PROFIT 36.0 6.9 7.3

• 80.8%
• 79.7%

Taxes

• 1.2

0.2

• 0.1

n.a.

• 93.9%

PROFIT FOR THE PERIOD 34.8 7.1 7.2

• 79.6%
• 79.2%

(Profit/Loss) for the period related to third parties 0.0 0.0 0.0 n.a. n.a. GROUP NET PROFIT 34.8 7.1 7.2

• 79.6%
• 79.2%

GROUP CONSOLIDATED

68

Funds from Operations (FFO) € 41.8 mn (+7.6%)

Funds from Operations CONS_2019 CONS_2018 Δ vs cons 2018 D%

Core Business EBITDA 62,946 55,637 7,309 13.1% IFRS16 ADJUSTMENTS (payable leases)

• 5,096
• 5,096

n.a.

Adj Financial management

• 15,451
• 16,046

595

• 3.7%

Adj Extraordinary management

n.a.

Gross Margin from trading activities

n.a.

Adj current taxes for the period

• 557
• 700

143

• 20.4%

FFO 41,842 38,891 2,951

7.6%

69

NNNAV

Δ% (b vs a)

€'000 € p.s. €'000 € p.s. Total shares

110,341,903 110,341,903 1) Group shareholders' equity 1,252,338

11.35

1,202,438

10.90

• 4.0%

Excludes

Fair value of financial instruments 17,364 21,204 n.a Deferred taxes 28,480 27,274 n.a Goodwill as a result of deferred taxes

2) EPRA NAV 1,298,182

11.77

1,250,916

11.34

• 3.6%

Includes

Fair value of Financial instruments (17,364) (21,204) n.a Fair value of debt 11,116 (12,569)

• 213.1%

Deferred taxes

(28,480)

(27,274) n.a

3) EPRA NNNAV 1,263,454

11.45

1,189,869

10.78

• 5.8%

NNNAV Calculation 31/12/2018 (a) 30/06/2019 (b)

70

FY2018

More Financial Highlights

1H 2019

€191 mn*

€181 mn*

UNCOMMITTED CREDIT LINES GRANTED €148.2 mn

€158.3 mn

UNCOMMITTED CREDIT LINES AVAILABLE €1,462.6 mn

€1,447.4 mn

UNENCUMBERED ASSETS SHARE OF M/L DEBT 79.8%

93.5%

€60 mn

€60 mn

COMMITTED CREDIT LINES GRANTED AND AVAILABLE

*Some banks allowed us to transform them in medium/long-term not granted credit lines .

71

GEARING RATIO (€000)

Reclassified Balance Sheet

1,107,860 1,184,888 1,265,891 1,219,731 31/12/2018 30/06/2019

Net Debt Adj Net Equity

0,88 0,97

Sources - Uses of funds (€/000) 30/06/2019 31/12/2018 D D% Fixed assets 2,370,089 2,346,527 23,562 0.99% Assets under construction and advances 36,619 36,563 56 0.15% Intangibles assets 12,401 12,696 (295) (2.38%) Other tangible assets 9,039 9,615 (576) (6.37%) Non-current assets held for sale 12,770 12,770 100.00% Sundry receivables and other non current assets 113 111 2 1.59% Equtiy investments 280 277 3 1.07% NWC 22,920 26,019 (3,099) (13.52%) Funds (8,898) (8,164) (734) 8.25% Payables and other non current liabilities (21,796) (19,742) (2,054) 9.42% Net deferred tax (assets) / liabilities (25,008) (26,340) 1,332 (5.33%) TOTAL USE OF FUNDS 2,408,529 2,377,562 30,967 1.29% Total shareholders' equity 1,202,437 1,252,338 (49,901) (4.15%) Net (assets) and liabilities for derivative instruments 21,204 17,364 3,840 18.11% Net debt 1,184,888 1,107,860 77,028 6.50% TOTAL SOURCES 2,408,529 2,377,562 30,967 1.29%

72

Italian Portfolio: hypermarkets and shopping malls

FULL OWNERSHIP OF 16 SHOPPING CENTRES (MALL + HYPERMARKET) 11 SHOPPING MALLS 9 HYPERMARKETS

27 SHOPPING MALLS 25 HYPERMARKETS TENANTS OF HYPERMARKETS CENTRO D'ABRUZZO -Pescara CENTRO D'ABRUZZO -Pescara Coop Alleanza 3.0 CLODI' - Chioggia CLODI' - Chioggia Coop Alleanza 3.0 PORTO GRANDE - Porto d'Ascoli (AP) PORTO GRANDE - Porto d'Ascoli (AP) Coop Alleanza 3.0 ESP - Ravenna ESP - Ravenna Coop Alleanza 3.0 CENTRO BORGO -Bologna CENTRO BORGO -Bologna Coop Alleanza 3.0 CONE' RETAIL PARK - Conegliano (TV) CONE' RETAIL PARK - Conegliano (TV) Coop Alleanza 3.0 LE MAIOLICHE - Faenza LE MAIOLICHE - Faenza Coop Alleanza 3.0 LUNGO SAVIO -Cesena LUNGO SAVIO -Cesena Coop Alleanza 3.0 CITTA' DELLE STELLE - Ascoli Piceno CITTA' DELLE STELLE - Ascoli Piceno Coop Alleanza 3.0 KATANE' - Catania KATANE' - Catania Coop Sicilia CENTRO LAME - Bologna CENTRO LAME - Bologna Coop Alleanza 3.0 CENTRO LEONARDO - Imola (BO) CENTRO LEONARDO - Imola (BO) Coop Alleanza 3.0 TORRE INGASTONE - Palermo TORRE INGASTONE - Palermo Coop Sicilia CASILINO -Roma CASILINO -Roma Distribuzione Lazio Umbria srl LE PORTE DI NAPOLI -Afragola (NA) LE PORTE DI NAPOLI -Afragola (NA) Distribuzione Centro Sud Srl (ipercoop) TIBURTINO -Guidonia (RM) TIBURTINO -Guidonia (RM) Distribuzione Centro Sud Srl (ipercoop) MILLENNIUM GALLERY - Rovereto (TN) PUNTADIFERRO - Forlì (FC) CENTROLUNA - Sarzana (SP) LA FAVORITA - Mantova MAREMA' - Grosseto CENTRO SARCA - Sesto S. Giovanni (MI) MONDOVICINO RETAIL PARK -Mondovì (CN) Gran Rondò (Crema) Piazza Mazzini (Livorno) I BRICCHI - Isola d'Asti (AT) DARSENA CITY

• Ferrara

(50%

• wned

by Beni Stabili) Supermkt Civita Castellana (Viterbo) Distribuzione Lazio Umbria srl Supermkt Cecina (Livorno) Unicoop Tirreno Hypermkt Le Fonti del Corallo - Livorno Unicoop Tirreno Hypermkt Schio-Schio (Vicenza) Coop Alleanza 3.0 Hypermkt LUGO - Lugo (RA) Coop Alleanza 3.0 Hypermkt IL MAESTRALE - Senigallia (AN) Coop Alleanza 3.0 Hypermkt MIRALFIORE - Pesaro Coop Alleanza 3.0 Supermkt AQUILEJA - Ravenna Coop Alleanza 3.0 Hypermkt I MALATESTA - Rimini Coop Alleanza 3.0 Hypermkts not owned by IGD Malls not owned by IGD

73

(1) Source: Osservatorio eCommerce B2c - Politecnico di Milano research department (2) Source: internal processing on data from “E-commerce in Italia 2019”, Casaleggio Associati, April 2019

Focus on E-Commerce in Italy

Low

E-Commerce penetration

2018

E-commerce in Italy: 6.5% of total retail sales

• E-commerce penetration in Italy is lower when compared to
• ther industrialised countries, this is not only a delay in its

infiltration but it is due to cultural and structural factors

• Total online sales in Italy in 2018: €27.5 bn of which 45%

services (penetration 10%) and 55% products (penetration 5%) E-commerce on total retail sales (1) %

Impact of Online purchases on shopping centre purchases:

• ca. 38%

Impact of E-commerce on the various merchandising categories (2)

19% 18% 17% 15% 14% 6.50% 6% 0% 5% 10% 15% 20% UK China US Germany France Italy Spain food 4% clothing 3% publishing industry 3% furnishing 1% health and beauty 1% electronics 5% insurances 8%

• nline shopping

specialist (amazon, e- bay,…) 22% tourism 43%

• ther services

10%

Claudia Contarini, IR

• T. +39. 051 509213

claudia.contarini@gruppoigd.it Federica Pivetti, IR Team

• T. +39. 051 509260

federica.pivetti@gruppoigd.it

to @igdSIIQ

Elisa Zanicheli, IR Team

• T. +39. 051 509242

elisa.zanicheli@gruppoigd.it